How To Fix FARR_CONTRACT_MAIN864 - Time-based performance obligation &1 cannot have open revenue

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_CONTRACT_MAIN - Revenue Accounting: Contract Management

• Message number: 864

• Message text: Time-based performance obligation &1 cannot have open revenue

What causes this issue?

Performance obligation &v1& is a time-based performance obligation. If
its end date is earlier than its migration date, the performance
obligation is fully fulfilled. Therefore, performance obligation &v1&
cannot have open revenue when its end date is earlier than the migration
date.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

You can either change the end date of performance obligation &v1& or its
migration date to make sure the end date is later than the the migration
date.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FARR_CONTRACT_MAIN864 - Time-based performance obligation &1 cannot have open revenue ?

  The SAP error message FARR_CONTRACT_MAIN864 indicates that there is an issue with a time-based performance obligation in the context of revenue recognition. Specifically, the error states that the performance obligation cannot have open revenue, which typically means that there are still unrecognized revenues associated with that obligation.
  Cause:
  
  
  Open Revenue: The primary cause of this error is that there are still amounts of revenue that have not been recognized for the specified performance obligation. This can occur if the revenue recognition process has not been completed or if there are pending transactions that need to be processed.
  
  
  Contract Configuration: There may be issues with how the contract or performance obligation is configured in the system. For example, if the performance obligation is set to recognize revenue over time, but there are still amounts that have not been recognized, this error can occur.
  
  
  Data Inconsistencies: There may be inconsistencies in the data related to the performance obligation, such as incorrect dates, amounts, or statuses.
  
  
  Solution:
  
  
  Check Open Revenue: Review the performance obligation to identify any open revenue amounts. You can do this by navigating to the relevant contract and checking the revenue recognition status.
  
  
  Complete Revenue Recognition: If there are amounts that need to be recognized, ensure that the revenue recognition process is completed. This may involve running the revenue recognition program or processing any pending transactions.
  
  
  Review Contract Settings: Check the configuration of the contract and performance obligation. Ensure that the settings align with the intended revenue recognition method and that there are no discrepancies.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling performance obligations and revenue recognition. This can provide insights into best practices and troubleshooting steps.
  
  
  Contact Support: If the issue persists after checking the above points, consider reaching out to SAP support or your internal SAP team for further assistance. They may be able to provide more detailed analysis and solutions based on your specific system configuration.
  
  
  Related Information:
  
  Revenue Recognition in SAP: Understanding how revenue recognition works in SAP, including the different methods (e.g., point in time vs. over time) and how performance obligations are defined and managed.
  SAP Notes and Knowledge Base Articles: Search for relevant SAP Notes or articles that may address this specific error message or provide additional troubleshooting steps.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP that can help you analyze contracts and performance obligations, such as FARR for revenue recognition.
  
  By following these steps, you should be able to identify the cause of the error and implement a solution to resolve it.